These are my personal rules for buying, selling, and swapping precious metals. They're like the pirate code: they're more like "guidelines." As far as I can tell, provided the precious metal bull market is in tact, I think these rules are valid.
I develop these rules as I make mistakes or smart decisions personally (mostly from mistakes). Your mileage may vary in using these rules, but I post them here as a personal reference and in the hopes it may help educate you if you decide to invest in precious metals.
Tuesday, 28 February 2012
Sunday, 26 February 2012
Gold to Silver Ratio - Part 1
The gold to silver ratio (or GSR, as I call it) is the ratio of how many ounces of silver an ounce of gold can be exchanged for.
It stands to reason that the lower this ratio is, the less silver an ounce of gold can be traded for (or the more gold silver can be exchanged for). Likewise, the higher this ratio is, the more silver an ounce of gold can be traded for (or the more silver gold can be exchanged for).
It's common knowledge that both metals have been in a bull market since around 2001. For silver specifically, it reached it's lowest point in November 25th, 2001 at $4.00 / oz. A few months later, silver hit a peak at $4.87 on Jan 6, 2002. A few months later, on July 14th silver hit another peak at $5.15.
On an unrelated note, as a Private in the Canadian Forces reserves back then, my daily salary could have bought me just under 16 ounces of silver. 11 years later, as a civilian professional software engineer, my daily salary can buy me about 5 ounces of silver, even though in dollar terms, my salary has roughly tripled. Silver in the same time has increased around 6 times... good thing I was buying mutual funds back the... oh wait... most of them only were up 10% in the same time period silver was up 600%.
It stands to reason that the lower this ratio is, the less silver an ounce of gold can be traded for (or the more gold silver can be exchanged for). Likewise, the higher this ratio is, the more silver an ounce of gold can be traded for (or the more silver gold can be exchanged for).
It's common knowledge that both metals have been in a bull market since around 2001. For silver specifically, it reached it's lowest point in November 25th, 2001 at $4.00 / oz. A few months later, silver hit a peak at $4.87 on Jan 6, 2002. A few months later, on July 14th silver hit another peak at $5.15.
On an unrelated note, as a Private in the Canadian Forces reserves back then, my daily salary could have bought me just under 16 ounces of silver. 11 years later, as a civilian professional software engineer, my daily salary can buy me about 5 ounces of silver, even though in dollar terms, my salary has roughly tripled. Silver in the same time has increased around 6 times... good thing I was buying mutual funds back the... oh wait... most of them only were up 10% in the same time period silver was up 600%.
Saturday, 25 February 2012
Precious Metals Weekly Analysis - Week 8 - 24 Feb 2012
Big moves this week... let's just go right into the charts
Thursday, 23 February 2012
Alert: 23 Feb Silver Breakout Update
Silver had a huge breakout today, it breezed past a lot of resistance, and for me most importantly, flew past the 200 day moving average.
If I did not own an ounce of silver, I would be buying like crazy right now, at $35.41 and would probably keep doing so all the way up to at least $50.
If I felt comfortable with the position I had built up from the September smack-down onwards, I would be a bit more tempered in my response and wait and see and only get in when the price touches the 200 day moving average or better yet, the long term support trend-line I've mentioned in many of my previous posts.
Is this the start of the big run up to $50, then $60, than $100, then $300? I don't know. I hope so. My gut is telling me we're either out of the woods of this pull back or darn close to it. I hope any of you reading this have the stomach to ride this one out :)
My gut is still telling me a Greek default or American war against Iran could cause the price to pull back. I don't know though. Good luck, silva stacka's!
If I did not own an ounce of silver, I would be buying like crazy right now, at $35.41 and would probably keep doing so all the way up to at least $50.
If I felt comfortable with the position I had built up from the September smack-down onwards, I would be a bit more tempered in my response and wait and see and only get in when the price touches the 200 day moving average or better yet, the long term support trend-line I've mentioned in many of my previous posts.
Is this the start of the big run up to $50, then $60, than $100, then $300? I don't know. I hope so. My gut is telling me we're either out of the woods of this pull back or darn close to it. I hope any of you reading this have the stomach to ride this one out :)
My gut is still telling me a Greek default or American war against Iran could cause the price to pull back. I don't know though. Good luck, silva stacka's!
Sunday, 19 February 2012
Capitalism is Magic: A Friend In Deed
Let me start by saying that I am totally rocking out to Pinkie's new song "Smile, Smile, Smile." I'm a but upset that I didn't hear about it earlier given that it was leaked in November. Oh well... I can't wait until Sim Gretina remixes this:
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